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University researchers in economics, mathematics, and physics have studied the dynamics of online auctions. Some of this work has been funded by research fellowships from the prestigious Alfred P. Sloan Foundation. The research has included the examination of "late bidding" in online auctions, and its resulting impact on success rates. The following are excerpts from those findings, and press clippings.

A study by physicists at Seoul National University confirms via mathematical modeling that 'sniping', waiting for the very last second to submit your bid, is indeed "a rational and effective strategy to win in an eBay auction. Our analysis explicitly shows that the winning strategy is to bid at the last moment as the first attempt rather than incremental bidding from the start." The study appears in the current Physical Review eJournal.
Dan Vergano, USAToday; "On eBay, It Pays to Snipe" 6/26/2006

The last-minute bidding phenomenon has attracted a good deal of attention among academic researchers. One explanation for last minute bidding is that it is due to the private information of bidders.
Patrick Bajari, Stanford University & Ali Hortacsu, University of Chicago; "Cyberspace Auctions and Pricing Issues: A Review of Empirical Findings"

Experts don't want to reveal their interest in the auction too early. Suppose you are a recognized experts on coins. If you bid early on a particular coin, you may reveal to others that this coin is highly desirable. Perhaps it is better to delay bidding in the hopes that others won't recognize the coin's value, and then sneak in at the last minute with a winning bid.
Hal R. Varian, New York Times; Economic Scene: "Online Users as Laboratory Rats"

Late bidding might also be optimal strategy for well informed bidders (experts) who want to protect their private information about the value of a particular item. Assume that only expert can recognize the true resale value of a good on sale (for instance an antique table). When she bids early in the auction, her bid might be a signal for other bidders that the object is unusually valuable. Bidding just before the end of the auction with fixed end time allows the expert (who can be recognized by her frequent participation or high feedback number) to profit from her information without leaving other bidders enough time to closely examine the item and bid.
Ladislav Wintr, Clark University & Banque Centrale du Luxembourg; "Some Evidence on Late Bidding in eBay Auctions"